Mortgage application after matched betting

BoiledBreadTomatoSauce

Exodi wrote: »

I'll be honest, I have tutored around 15 people and everyone seems to start with the same mindset as you've just portrayed: you envisaged a few hours to return £200? I'm not sure why people have their expectations so high? This isn't a get rich quick scheme. Most people will take home £10 an hour from work but expect £70 an hour from something they've never done?

When people start, they may make about £20-£30+ an hour depending on how much they start with, the welcome offers at the time and how quickly they pick it up (which don't forget is better than what most people earn at work!)

I was (again I've stopped because I'm currently a few weeks away from completing on my house) putting in around 1-2 hours per day (including weekends) as part of my routine to get around £1,000 a month. I have had a few nice extra bonuses in a month (£1400 and £720 being my largest).

Sorry, a few hours a week to return £200 a month I meant!

ACG

Separate bank accounts, no money going back and forth and do not use the money for your deposit and it should be fine.

If you use the money for a deposit then you start to limit your options. It can still be used if you can evidence you are keeping the account separate and not using all of your spare money but it starts to get more tricky... Basically you end up needing a lender who leaves seeing proof of deposit to the broker/solicitor.

We had one where the bloke bet £50k one month. His annual income was £35k... There was a lot more to the case and we asked for a lot of paperwork but in the end we were on board with everything and everything he told us made sense and more importantly could be evidenced.

Exodi

ACG wrote: »

Separate bank accounts, no money going back and forth and do not use the money for your deposit and it should be fine.

If you use the money for a deposit then you start to limit your options. It can still be used if you can evidence you are keeping the account separate and not using all of your spare money but it starts to get more tricky... Basically you end up needing a lender who leaves seeing proof of deposit to the broker/solicitor.

We had one where the bloke bet £50k one month. His annual income was £35k... There was a lot more to the case and we asked for a lot of paperwork but in the end we were on board with everything and everything he told us made sense and more importantly could be evidenced.

If the money going back and forth isn't included in the bank statements that are requested (as the OP was intending to do) then I can't see why you'd need separate accounts or why you shouldn't use the money for deposit? The only reason I wish I used a separate account from the beginning was just convenience.

Regards to using the money for deposit, we're not talking about a colossal sum of money that seems to have appears out of thin air and can't be explained through conventional saving - in the OP's circumstances we're talking about a few hundred pounds. When I did AML checks with my lender & my solicitor, both asked for 3 months worth of statements for the accounts that I was using for my deposit.

Admittedly there is a risk that 6 months of bank statements are requested.

The example of the bloke betting £50k in a month is quite funny, I don't actually think I've bet more than £5k in a month so that's crazy. In line with my earlier comments though, if this bloke had applied for his mortgage a few months later, he wouldn't have had any issues.

ACG

If you have an underwriter looking at bank statements and they can see matched betting, there tends to be a "ooooo hes a gambling addict" stance on things. If you leave it to a broker and a solicitor to find a relaxed lender and assess proof of deposit for money laundering purposes, there tends to be a more common sense approach applied.

Exodi

ACG wrote: »

If you have an underwriter looking at bank statements and they can see matched betting, there tends to be a "ooooo hes a gambling addict" stance on things. If you leave it to a broker and a solicitor to find a relaxed lender and assess proof of deposit for money laundering purposes, there tends to be a more common sense approach applied.

Of course which is why the OP and most savvy matched betters tend to 'pause' for a few months so the bank statements are clear of such transactions. An underwriter can't query something they're not aware of.

Actually, as you are a broker, I'd imagine there's an iron fist approach with regards to gambling transactions on bank statements? I'd heard conflicting comments between "any relatively high gambling transaction = decline" and "if you're not losing money, or it's within disposable income limits, there's no problem". Naturally avoiding that conversation altogether is better but I'd be curious to hear the general stance on such matters?

BoiledBreadTomatoSauce

In terms of the likelihood of them asking for 3 months or 6 months statements, is it the case that 3 months is the standard and they ask for more if they see something they don't like? Or is it just the case that you may get asked for 6 months off the bat?

In terms of affordability I'd hope we would be able to apply without too many questions - monthly income between us is about £4500 and with a 10% deposit we'd be looking at places with a max mortgage between £600 - £800 a month.

ACG

Exodi wrote: »

Actually, as you are a broker, I'd imagine there's an iron fist approach with regards to gambling transactions on bank statements? I'd heard conflicting comments between "any relatively high gambling transaction = decline" and "if you're not losing money, or it's within disposable income limits, there's no problem". Naturally avoiding that conversation altogether is better but I'd be curious to hear the general stance on such matters?

It is down to the broker/lender. Ultimately we are putting our name/reputation/license on the line on any case we do.

Winning to me does not come in to it. You could be an addict but good.

I look at everything, but I would take the view that someone betting £100 at the bookies on a Saturday for the football is more favourable than someone betting £5 a night on online bingo. More so if I can get a statement from say July that has no betting on saturday as there is no football on.

The case where he bet £50k in a month was effectively a group of lads who had all clubbed together to do matched betting. On the face of it, £50k in a month looks bad. When you see the transactions coming in from the friends and the friends are happy to provide statements and a written explanation, it then starts to all make sense - even if it is a bit quirky.

My father in law puts money on daft bets every day of the week. He is a bit of an addict really, but he only puts a tenner a night on and he has done for the 12 years I have known him. He is not in debt and whilst on the face of it, it looks a bit dubious, is it any different to someone going to pub and buying 3 pints a night?

We just look at the overall picture and ask for more evidence when we think it is needed. I am not a massive fan of doing them, but I also take the view that if they are not going overdrawn and there is an explanation, why should they not be able to get a mortgage. It is their money they are spending and their other bills are being paid.

kingstreet

I have a case in front of me where £2,700 has been gambled in the last three months and that, when added to affordability, means the mortgage would not be affordable if a lender treated it as a hobby.

Further, there are no credits to the account from the firms who have received the deposits (unless the winnings are being syphoned elsewhere) and there are unpaids and returned DDMs every month on the statements as a result of the gambling.

ACG

kingstreet wrote: »

I have a case in front of me where £2,700 has been gambled in the last three months and that, when added to affordability, means the mortgage would not be affordable if a lender treated it as a hobby.

Further, there are no credits to the account from the firms who have received the deposits (unless the winnings are being syphoned elsewhere) and there are unpaids and returned DDMs every month on the statements as a result of the gambling.

Jo would have a field day with that if she was still there... So when are you submitting it? :P

kingstreet

31st April.